G/SG/N/8/EU/1/Suppl.2  
G/SG/N/10/EU/1/Suppl.11  
G/SG/N/11/EU/1/Suppl.8  
 
11 June 2021  
(21-4817) Page: 1/6 
Committee on Safeguards  Original: English  
 
 
NOTIFICATION PURSUANT TO ARTICLE 12.1(C)  
OF THE AGREEMENT ON SAFEGUARDS (EXTENSION)  
NOTIFICATION PURSUANT TO ARTICLE 9, FOOTNOTE 2  
OF THE AGREEMENT  ON SAFEGUARDS  
EUROPEAN UNION 
Certain Steel Products  
Supplement  
The following notification, dated  10 June and received  on 11 June 2021, is being circulated at the 
request of the delegation of European Union.  
 
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The European Union had notified the initiation of an investigation on 26 February 2021 
(G/SG/N/6/EU/1/Suppl .2). The scope of the investigation was to decide whether the safeguard 
measure should be prolonged beyond 30 June 2021. The European Union hereby notifies to the 
Committee on Safeguards, pursuant to Article 12.1(c) of the Agreement on Safeguards, its prop osal 
to extend a safeguard measure on imports of certain steel products.  
1. Evidence that the safeguard measure continues to be necessary to prevent or 
remedy serious injury or threat thereof and that the industry concerned is adjusting  
Pursuant to Article 7, paragraphs 2 and 3 of the Agreement on Safeguards, a safeguard measure 
can be in place for a maximum duration of 8 years. The Agreement also foresees that a measure 
originally imposed cannot last more than 4 years, unless the competent authoriti es of the importing 
Member have determined that the safeguard measure continues to be necessary to prevent or 
remedy serious injury and that there is evidence that the industry is adjusting. The EU safeguard 
measure was originally in place for a period of 3 years.  
To determine whether the safeguard measure continues to be necessary to prevent or remedy 
serious injury or threat thereof imports and whether the industry is adjusting, the European Union 
undertook a comprehensive analysis of a broad set of data from multiple sources: The 
European  Union assessed , inter alia : the evidence provided by the Union industry in their 
questionnaire replies and written submissions, the information provided by interested parties (users, 
importers, exporting producers and ex porting country governments) in their written submissions, as 
well as information available to the European Union including statistical databases and relevant 
publications on the steel sector.  
Economic situation of the Union industry  
To assess the economic  situation of the Union industry, the developments of imports and other 
relevant data included in its assessment, the European Union assessed the data of the period 
2018-2020 ('the period considered').  G/SG/N/8/EU/1/Suppl.2 • G/SG/N/10/EU/1/Suppl.11 • G/SG/N/11/EU/1/Suppl.8  
 
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  Table 1 - Production, production capacity, capacity ut ilization, stocks  
in 000 tonnes  2018  2019  2020  
Production volume of the product concerned  200.416  189.459  168.675  
index 2018 = 100  100 95 84 
Production capacity for the product concerned  252.367  252.461  251.864  
index 2018 = 100  100 100 100 
Capacity utilisation  79,41%  75,04%  66,97%  
Stocks  21.464  20.000  18.251  
index 2018 = 100  100 93 85 
Source: Questionnaire replies  
Production volume declined constantly throughout the period considered by 5% and 16% in 2019 
and 2020 respectively. As a result, in a context where production capacity remained stable, the 
capacity utilisation ratio declined year -on-year. Stocks followed a similar declining trend during the 
period.  
Table 2 - Union consumption, domestic sales and market share  
  2018  2019  2020  
Consumption in 000 tonnes  167.140  157.120  139.955  
index 2018 = 100  100 94 84 
Domestic sales in 000 tonnes  132.960  127.448  114.936  
index 2018 = 100  100 96 86 
Market share in %  79,6%  81,1%  82,1%  
Source: Industry data and questionnaire replies  
During the period considered consumption decreased by 6% and 16% in 2019 and 2020 respectively 
when compared to the year 2018. Domestic sales of the Union industry followed a similar downward 
trend. In the same period, the Union industry increased its market share by 2.5 percentage points.  
Table 3 - Unit sales price, profitability, cash flow and return on capital employed  
  2018  2019  2020  
Unit sales price  (EUR/tonne)  763 725 666 
index 2018 = 100  100 95 87 
Profitability (% turnover)  5,7%  -0,4%  -3,7%  
Cash flow (million EUR)  7.456  6.798  6.386  
index 2018 = 100  100 91 86 
Return on capital employed (% )  8,6%  -2,6%  -19,4%  
Source: Questionnaire replies  
Unit sales price of the product concerned went down by 5% in 2019 and by 13% in 2020 as compared 
to 2018. The Union industry experienced a massive drop in profitability, turning lossmaking already 
in 2019. This trend continued in 2020, reaching -3,7% losses. Cash flow and return on capital 
employed also saw a continuous negative trend during the period considered.  
Table 4 - Employment  
(FTE)  2018  2019  2020  
Employment  215.359  215.620  202.331  
index 2018 = 100  100 100 94 
Employment remained stable in 2019 but decreased by 6% in 2020.  G/SG/N/8/EU/1/Suppl.2 • G/SG/N/10/EU/1/Suppl.11 • G/SG/N/11/EU/1/Suppl.8  
 
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  The above data showed that the economic situation of the Union industry had deteriorated 
significantly already in the year 2019, when the Union industry already turned into lossmaking, with 
virtually all injury i ndicators showing a sharp negative trend. It should be noted that from 2018 to 
2019 the profitability experienced a slump by 6.1 percentage points to reach -0.4% at the end of 
2019. This serious worsening thus took place well before the unexpected onset of  the COVID -19 
pandemic and its ensuing effects on the market.  
The financial position of the Union industry further deteriorated in the course of 2020, when the 
economic effects of the COVID crisis complemented the weakening of the Union industry's financia l 
position produced by the continuation during 2020 of the import pressure exerted by exporters to 
the Union. The effects of the COVID -19 crisis came on top of the continuous jeopardy to the financial 
position of the Union industry caused by import pressur e. Imports together with, to some extent, 
the COVID outbreak plunged the Union industry into a serious financial situation with losses of -4%. 
It should be emphasized that the additional impact of the pandemic -induced crisis on the financial 
position of th e Union industry, which deepened the already undergoing import -induced deterioration, 
was comparatively smaller. From 2019 to 2020 the profitability decreased 3.3 percentage points to 
reach the bottom losses of almost -4%. Therefore, the COVID -19 pandemic crisis has thus amplified 
a pre-existing and continuing source of serious injury for the Union industry, which is mainly driven 
by imports.  
2. Information on whether there is an absolute increase in imports or an increase in 
imports relative to domestic produ ction  
Table 5 - Evolution of imports in tonnes  
  2018  2019  2020  
Volume of imports  34.180.000  29.672.000  25.019.000  
index 2018 = 100  100 87 73 
Source: EUROSTAT  
The absolute level of imports decreased year -on-year during the period considered, by 13% in 2019 
and by 27% in 2020 when compared to 2018. However, the presence of imports in the market 
remained at high levels. The level of imports increased its share significantly as compared to the 
production of the Union industry, reaching more than 20% in 2020. In the years prior to the 
imposition of a safeguard measure, the maximum share reached by imports was 11,8% in 2017.  
Table 6 - Imports and production volume  
Year 2013  2014  2015  2016  2017  2018  2019  2020  
Import 
volume 
(tonnes)  18.329,00  21.868,00  26.552,00  29.141,00  30.094,00  25.019,00  29.672,00  34.180,00  
Production 
volume 
(tonnes)  243.945,00  249.855,00  248.763,00  249.204,00  254.925,00  200.416,00  189.459,00  168.675,00  
Share of 
imports 
relative to 
domestic 
production  7,5%  8,8%  10,7%  11,7%  11,8%  12,5%  15,7%  20,3%  
Furthermore, the European Union found that the market share of imports remained, on average, 
higher during the period subject to the safeguard measure than in the period before the imposition 
of any safeguard measure (period 2013 -2017)1, when compared to consumption.  
 
1 The maximum share of imports in the period 2013 -2017 was 18,1% (in 2017).  G/SG/N/8/EU/1/Suppl.2 • G/SG/N/10/EU/1/Suppl.11 • G/SG/N/11/EU/1/Suppl.8  
 
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  Table 7 - Import share evolution (over consumption)  
  2018  2019  2020  
Consumption in 000 tonnes  167.140  157.120  139.955  
index 2018 = 100  100 94 84 
Volume of imports in 000 tonnes  34.180  29.672  25.019  
index 2018 = 100  100 87 73 
Market share  20,4%  18,9%  17,9%  
Source: EUROSTAT, Industry data  
In addition, the investigation confirmed that during the period considered the main steel exporting 
countries exhausted a large number of the country -specific quotas allocated to them and, quite 
often, in a rather short time frame within the relevant periods of application of the safeguard. 
Therefore, the investigation concluded that import pressure rema ined high during the period 
considered.  
3. Precise description of the product involved  
The product subject to the safeguard measure is certain steel products. The relevant tariff lines 
subject to the measure are the same as those listed in Annex I to the Noti fication of 7 February  2019 
(G/SG/N/8/EU/1/Suppl.1  - G/SG/N/10/EU/1/Suppl.1  - G/SG/N/11/EU/1/Suppl.2).  
4. If the final measure replaces a provisional measure, or if a final measure is 
extended, a Member is encouraged to provide a written description of any part of 
the imported product that will no longer be subject to the measure  
The extended measure does not introduce any changes to its scope, neither in terms of product 
definition, nor in terms of geographical coverage.  
5. Description of th e proposed measure  
The proposed measure consists of a Tariff -Rate Quota ('TRQ') available per product category, out of 
which, an out -of-quota 25% duty applies.  
6. Proposed date of introduction of the measure  
The proposed extension of the safeguard measure wil l come into effect on 1 July 2021.  
7. Expected duration of the measure  
The expected duration of the proposed prolongation of the safeguard measure is three years, until 
30 June 2024 .2 
8. Proposed date for the review  
The European Union commits in its proposal to undertake a review of the functioning of the safeguard 
measure within the first year of prolongation. Other reviews are possible throughout the lifespan of 
the measure, where warranted.  
9. Expected timetable for progressive liberalization of the m easure  
The measure will continue being progressively liberalized, at regular intervals, at the beginning of 
each period of application. The rate of liberalisation foreseen in the proposed prolongation of the 
measure is an increase of the TRQ volume of 3% y early.  
 
2 30 June 2024 at 23h59, Brussels time . G/SG/N/8/EU/1/Suppl.2 • G/SG/N/10/EU/1/Suppl.11 • G/SG/N/11/EU/1/Suppl.8  
 
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  10. If the notification relates only to a finding of serious injury or threat thereof, and 
does not relate to a decision to apply or extend a safeguard measure  
Not applicable.  
11. Information relating to the extension of a safeguard measure  
(i) Evidence tha t the industry concerned is adjusting and that the safeguard measure continues 
to be necessary to prevent or remedy serious injury.  
The investigation, based on documented evidence, concluded that the Union industry is adjusting to 
a situation of higher imp ort volumes in the EU market.  
(ii) Reference to the WTO document that notified the initial application of the measure.  
Pursuant to Article 12.1(a) of the WTO Agreement on Safeguards, on 26 February 2021 the 
European  Union notified the Committee on Safeguar ds that its competent authority had initiated a 
safeguard investigation on the imports of certain steel products on 26 February 2021 
(G/SG/N/6/EU/1/Suppl.2).  
(iii) Duration of the measure from initial application till the date at which it will be extended  
The initial safeguard measure was from 19 July 2018 until 30 June 2021. The European Union 
proposes to extend the measure for three years, until 30 June 2024.  
(iv) Precise description of the measure in place prior to the date of extension  
The latest versio n of the measure in place can be found in the European Union's notification of 
14 December 2020 (G/SG/N/10/EU/1/Suppl.10  - G/SG/N/11/EU/1/Suppl.7). The original measure 
was notified on 7 February 2019 (G/SG/N/8/EU/1/Suppl.1  - G/SG/N/10/EU/1/Suppl.1  - 
G/SG/ N/11/EU/1/Suppl.2).  
12. Information relating to exporting members  
(i) The major exporting Members of imports of the product involved  
The main exporting countries of the product concerned are: Turkey, Russian Federation, India, 
People's Republic of China, Repub lic of Korea and Ukraine.  
(ii) Developing countries excluded  
The list of developing countries that will continue being subject to the safeguard measure remains 
the same as that included in Annex II to Commission Implementing Regulation (EU) 2020/2037.  
13. Invitation for consultations  
Consistent with Article 12.3 of the Safeguards Agreement, the European Union is prepared to consult 
with those Members having a substantial interest as exporters of the product concerned, with a view 
to exchanging views on the meas ure proposed.  
Consultations will take place, on a virtual setting, from Monday June 14th until Friday June 18th.  
Members wishing to engage in consultations should directly contact either the European Union 
delegation in Geneva or the European Commission at:  
TRADE -SAFE009 -REVIEW@ec.europa.eu  
enrique.arrieta@ec.europa.eu  G/SG/N/8/EU/1/Suppl.2 • G/SG/N/10/EU/1/Suppl.11 • G/SG/N/11/EU/1/Suppl.8  
 
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  The members should indicate in their email at least two different time slots for the consultations 
and, if possible, provide the names and email addresses of the participants.  
14. Members are encoura ged to attach, in an electronic form, publicly available 
document(s) containing the relevant decision(s) made by the competent authority.  
Not applicable at this stage.  
 
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